Hyundai Motor to launch commercial vehicle venture in China

Hyundai Motor-China venture


By Lee Youkyung
SEOUL, Dec. 20 (Yonhap) -- South Korea's top automaker Hyundai Motor Co. said
Sunday that it will launch a US$400 million venture in China with a local partner
next year to make inroads into the world's largest commercial vehicle market.

Hyundai signed an initial agreement with Chinese commercial vehicle manufacturer
Baotou Bei Ben Heavy-Duty Truck Co. on Saturday, to launch a 50-50 joint venture
next year, Hyundai said in a statement, adding that the two companies will invest
a total of $400 million.
The joint venture will take over a large truck business unit from the Chinese
company, which can manufacture 40,000 vehicles a year. Baotou Bei Ben Heavy-Duty
Truck, is China's sixth largest truck maker.
Hyundai said it will introduce models that upgrade existing Baotou Bei Ben
lineups and launch new commercial vehicle models by 2012.
Hyundai, which already sells passenger cars in China, aims to sell 100,000
heavy-duty trucks in China in 2014 and will gradually increase investment to
prepare for full lineups of commercial vehicles, the company said.
"It is essential to enter into the commercial vehicle market to become a
comprehensive automaker in China, which has become the world's largest auto
market," Choi Han-young, vice chairman of Hyundai's commercial vehicle business,
was quoted as saying in a press release. "Entering into the China market will
play a critical role in achieving our global sales target of 200,000 units of
commercial vehicle in 2013."
China's commercial vehicle market accounted for 29 percent of the global demand
last year, with a demand for mid-to-large size truck standing at 830,000. China's
demand for large trucks stood at 540,000 last year, and global automakers, such
as General Motors Corp., have set up joint ventures with local partners to tap
the fast-growing market.
Hyundai-Kia Automotive Group, which comprises Hyundai and its sister Kia Motors
Corp, is the world's fifth-biggest vehicle maker.
ylee@yna.co.kr
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